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The recently released Gender Gap Index ranks Pakistan at the bottom globally, with a closure rate of just 56.7 per cent of its overall gender gap. More specifically, in the Economic Participation and Opportunity category, Pakistan ranks at 143rd, pointing to the stagnant levels of female labour force participation, which in the formal economy range from anything between 3-25 per cent, depending on the sector, with fewer women in the higher management levels.
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The maternal wall remains one of the most frequently cited challenges women face. The lack of family support in the workplace, whether in the form of reliable childcare, parental leave, or flexible working arrangements, leads to leaky pipelines. Despite improvements in education levels among women, many who join the workforce tend to leave after having children.
According to research undertaken by the Pakistan Business Council (PBC), UNICEF, and UN Women Pakistan, 70pc of companies are aware of family-friendly workplace practices, but only around a quarter are actually implementing them. The report ‘Enhancing Family-Friendly Policies in Pakistan’ highlights that for many businesses, family support is still perceived as a discretionary benefit, rather than a basic workforce requirement.
The findings highlight that access to workplace childcare is limited, with major concerns over cost, accessibility, and the inconsistent quality of available options. While urban regions may have more facilities, high costs make them unaffordable for many families, while rural regions remain largely underserved.
To unlock the full potential of our workforce, parent-friendly policies must be treated not as optional benefits, but as essential infrastructure for inclusive economic growth
In lower-income settings, especially in industrial zones or remote areas, these services are virtually non-existent. Flexible work arrangements, such as remote work or staggered hours, are also rare, despite being consistently valued by employees.
At a policy level, Pakistan’s legal framework for parental leave and workplace childcare is fragmented, with major inconsistencies between provinces and generally weak enforcement. Maternity leave is more prevalent than paternity leave, and compliance monitoring is lacking. There is no federal policy standardising or monitoring quality childcare provision.
Practical models for business-led childcare solutions
Despite these challenges, some promising models demonstrate how businesses can lead the way. The good news is that there are several regional good practices and family-friendly solutions already exist and can be adapted to various contexts. The report outlines several workable models that have been effective both at a regional level and in Pakistan.
These include on-site day-care in larger companies, consortium-based childcare services shared by businesses in industrial clusters, community-run centres managed collaboratively with local partners, mobile childcare units for remote workforces and after-school programmes that are useful in urban settings with older children.
These models are backed by success stories. Bangladesh’s Mothers@Work initiative supports over 130,000 mothers in the garment industry, providing workplace childcare and breastfeeding spaces. In India, technology companies like Infosys and Wipro offer on-site crèches, childcare stipends, and return-to-work programmes for mothers, leading to higher retention and better gender diversity.
Research demonstrates that policies which support caregivers, regardless of gender, strengthen the workforce as a whole. Countries such as Sweden and Iceland offer paid parental leave for both parents, normalising caregiving for men, creating inclusive work environments that value families, and improving female employment rates.
Pakistan can learn from these models and localise them gradually. Expanding policy frameworks to include paternity leave and flexible work can ensure an inclusive approach and also reduce the cultural bias which requires child care and household responsibility to be the purview of women.
Public policy as a catalyst
The private sector cannot act alone. A shift in public policy is essential to enabling long-term change. In this respect, there is a need to understand both the barriers in current policy and how strategies can utilise the current infrastructure for expanding childcare. Research indicates how efforts in other countries have encouraged female workforce participation.
This includes: enforcing existing legislation on maternity leave and workplace childcare, offering tax incentives to companies and working mothers to encourage family support for women to return to work, standardising quality and safety across childcare services, and developing options for public-private partnerships which enable access to childcare.
Additionally, countries have implemented co-funding models, where government subsidies help small and medium enterprises provide childcare support.
A national priority
From an economic perspective, Pakistan cannot afford to ignore this issue. The report highlights a gap between awareness and action, one that limits not only individual potential but national economic performance. With a growing working-age population and increasing pressure on dual-income households, workplace support for families is no longer optional. To ensure more women participate in the workforce, it is essential to implement market-based and regulatory policy tools.
Interventions also need to consider the diverse challenges women face, shaped by cultural, socio-economic, and educational backgrounds. Hence, policymakers should prioritise integrated strategies: universal subsidies for affordability, paid leave for caregiving equity, and employer partnerships for scalability.
Globally, research by McKinsey & Company shows that companies with greater gender diversity are 25pc more likely to outperform peers. The study indicates, from a parental perspective, 76pc of unemployed parents cite childcare as a barrier to working, and nearly 89pc indicate they would consider entering the workforce if better childcare solutions were provided.
To unlock the full potential of Pakistan’s workforce, family-friendly policies must be treated not as optional benefits, but as essential infrastructure for inclusive economic growth.
The writer is a Research & Policy Analyst at the Centre of Excellence in Responsible Business (CERB), Pakistan Business Council
Published in Dawn, The Business and Finance Weekly, August 11th, 2025